Prime Minister Putin says Russia could join WTO in 2011

[News_Editor]

Prime Minister Putin says Russia could join WTO in 2011

2010-11-27 12:44:10 GMT+7 (ICT)

BERLIN, GERMANY (BNO NEWS) -- Russian Prime Minister Vladimir Putin on Friday said Moscow could join the World Trade Organization (WTO) by the end of 2011.

"I believe it is possible. We would like it to happen. On the whole, no uncoordinated issues remain," Putin said after meeting with German Chancellor Angela Merkel.

Putin also said that the European Union and Russia must resolve some issues between both sides in order to establish a free trade space worth trillions of euros. Russia has been negotiating WTO membership for 17 years, although the average accession period is only five to seven years.

On Wednesday, Russia announced that it resolved all major disagreements with the European Union in regards to its integration to WTO in what finally seemed like the first step of Russia’s access to the European free trade market.

"This is the final stage of our accession negotiations. Talks with the United States in recent months had largely settled differences that had been impossible to solve for years," said Russia’s Economic Development Minister Elvira Nabiullina.

However, the Russian PM said that the current level of partnership between Moscow and WTO is inadequate for the challenges ahead. For Russia, the biggest challenge is the resource base of its economy, while the EU is losing ground on the markets for industrial and high-tech products.

"Bilateral ties should seek to encourage a new wave of industrialization†for Europe by creating strategic alliances in the car industry, shipbuilding, aviation, space technologies, pharmaceutical industry, nuclear power and logistics," Putin added.

EU trade chief Karel De Gutch said that Russian export duties remain a stumbling block in the negotiations. Russia’s export duties on lumber drive up the cost of inputs for European manufacturers such as the Nordic timber and paper industries.

Under WTO rules, candidate countries must reach bilateral agreements with any existing member that wants one, as well as with a working party representing the entire membership. Russia will hold negotiations with the working party in December and in early 2011.

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